Amiantit to separate capital reduction, increase request

Amiantit headquarters

Saudi Arabian Amiantit Co.’s board of directors decided on Feb. 12, to split the capital reduction request from the capital increase via a rights issue, according to a bourse filing.

This was due to the fact that the deadline given to the listed joint stock companies to suspend the enactment of some provisions of the Companies Law, will end on March 4, 2022. In addition, it is currently difficult for the company to hold a general meeting.

Amiantit will file for the Capital Market Authority’s (CMA) approval of the capital reduction, and an extraordinary general meeting (EGM) will be held for the purpose of reducing the capital, after completing the necessary approvals.

Further, Amiantit said the board of directors’ recommendation to reduce capital by 69.06%, or SAR 221 million, via cancelling 22.1 million shares, is still valid. Additionally, the board said will maintain its proposal to increase capital later by SAR 346.5 million via a rights issue.

The capital cut/increase recommendations are subject to the approval of the relevant regulatory authorities and the extraordinary general meeting, the statement added. Updates as regards submitting the capital reduction / increase applications to the CMA will be duly revealed.

Wasatah Capital will remain the financial advisor of the capital cut and capital hike.

In November, Amiantit's board of directors recommended 69.06% capital reduction from SAR 320 million to SAR 99 million. The board of directors also recommended capital increase through a SAR 221 million rights issue, following the completion of the capital cut process, Argaam earlier reported.

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